STRUCTURE & OPERATIONS OF THE U.S. ECONOMY. VOCAB Entrepreneur: a business owner. Sole proprietorship: Business organizations owned by one person Partnership: A business organization in which two or more persons share responsibilities, costs, profits, and losses. Corporation: a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law. Stock: the capital raised by a business or corporation through the issue and subscription of shares. Dividends: a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves). Commercial banks: a bank that offers services to the general public and to companies. Savings and loan associations: an institution that accepts savings at interest and lends money to savers chiefly for home mortgage loans and may offer checking accounts and other services. Credit union: a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates. Credit cards: a small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit. Interest: money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt. Bankruptcy: the state of being bankrupt. Insurance: a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium. Circular-flow model: An economic model that displays how households, businesses, and the government interact in the U.S. economy. Revenue: income, especially when of a company or organization and of a substantial nature. Globalization: individuals & nations working across barriers of distance, culture & technology (necessary in part due to interdependent nature of the world economy – scarcity & uneven distribution of resources) Specialization – when people, businesses, regions and/or nations concentrate on goods and services that they can produce more efficiently than anyone else. Work ethic: attitudes & behaviors that indicate one’s desire to do a job well & to take pride in a job well done. Contracts: an agreement between 2 or more parties for doing or not doing something (enforceable by law) STRUCTURE & OPERATIONS OF THE U.S. ECONOMY. VOCAB Warranty: the promise made by a manufacturer or a seller to repair or replace a product within a certain time period if it is faulty.